TaxTMI 
TaxTMI 
2016 (2) TMI 626
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of Rs. 38.60 lacs made u/s 68 of the Income Tax Act without properly appreciating the facts of the case as well the reasons given by the A.O. in his order." 3. At the time of hearing before us, it is submitted by the learned DR that there was credit in the account of the assessee from large number of persons. In the bank account of the creditor, there was cash deposit immediately before issue of cheque to the assessee. That no satisfactory explanation was given by the assessee for cash deposit in the bank account of the creditor and the creditor was not produced for examination before the Assessing Officer. Therefore, the Assessing Officer was fully justified in treating the credit to be unexplained cash credit u/s 68 of the Income-ta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....heir confirmations in respect of the loan/credit entries. Various case laws, as cited by the appellant, including that of Banarsi Prashad vs. CIT 304 ITR 239 (All.) clearly take the issue in favour of the appellant. 5.1(a) The AO's objections as listed on page 10 & 11 of the assessment order are either irrelevant or very weak in the given facts and circumstances of the case. Once the evidence of their being assessed to tax along with copies of I.T. returns and confirmations are furnished; the nature of source of income in their hands can very well be ascertained. Some ladies were not produced on religious grounds but even then the appellant's counsel had offered that, if necessary, they would be produced and that, preferably an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ey to the assessee through banking channel. After analyzing their balance sheets, learned CIT(A) has also recorded the finding that they have sufficient creditworthiness because they have huge capital balances. On the facts of this case, in our opinion, the decision of Hon'ble Apex Court in the case of Orissa Corporation P.Ltd. (supra) would be squarely applicable. In the said case, there was credit balance in the account of the assessee in the name of three parties. The assessee gave confirmation of all the three creditors who were assessed to tax. Their general index numbers with the Department were also given. The Assessing Officer issued summons u/s 131 of the Act to the creditors which were returned unserved with the remark 'left'. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entioned case before Hon'ble Apex Court. In the case under appeal before us, the assessee not only gave the confirmation but also furnished the balance sheet of the creditors and also the acknowledgement of the filing of income tax return by the creditors. Therefore, if the Revenue was not satisfied about the creditworthiness of the creditors, it could have examined the creditors as they were assessed to income tax and all particulars relating to them were with the Assessing Officer. In view of the above, in our opinion, the above decision of Hon'ble Apex Court would be squarely applicable to the facts of the assessee's case and, respectfully following the same, we do not find any justification to interfere with the order of learned CIT(A).....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of both the sides and have perused relevant material placed before us. Section 45(4) of the Act reads as under:- "45 (4) The profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm or other association of persons or body of individuals (not being a company or a co-operative society) or otherwise, shall be chargeable to tax as the income of the firm, association or body, of the previous year in which the said transfer takes place and, for the purpose of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer." 13. Section 45(4) o....